Frontline (FRO) AI Stock Analysis

• Market Cap: $5.85B
• Dividend Yield: 4.32%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.71
• Revenue Growth: -13.41%
• EPS Growth: -60.18%
• Country: US
• Employees: 85
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.18
• Shares Outstanding: 222,622,900
• 10 Day Avg. Volume: 4,081,989
• 30 Day Avg. Volume: 2,752,189
• PEG Ratio: -0.26
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 1.54
• P/FCF Ratio: -17.66
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 5.04
• Enterprise Value/Gross Profit: 18.99
• Enterprise Value/Ebitda: 11.01
• 1Y Price Target: $24.68
• Price Target Upside: -6.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.35
• Revenue Forecast (FY): $1.46B

• Rating: 70 Neutral
• Price Target: $29.00 ▲(10.31% Upside)

Frontline's overall stock score reflects a strong financial performance with robust cash flow and profitability, supported by positive earnings call sentiment. However, high leverage, declining margins, and mixed technical indicators present challenges. The stock's valuation is moderate, with an attractive dividend yield.

Positive Factors

Fleet Optimization

A modern fleet with an average age of 7 years enhances operational efficiency and reduces maintenance costs, supporting long-term profitability.

Strong Liquidity Position

Robust liquidity provides financial flexibility to navigate market fluctuations and invest in growth opportunities, ensuring long-term stability.

Positive Market Outlook

Favorable market conditions with increased oil exports and trade lane shifts can drive demand for Frontline's services, boosting revenue potential.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates potential challenges in maintaining market share or pricing power, affecting long-term financial performance.

High Leverage

High leverage can limit financial flexibility and increase risk, especially if market conditions worsen, impacting long-term viability.

Increased Operating Expenses

Rising operating expenses can erode profit margins and reduce cash flow, challenging the company's ability to sustain profitability over time.

Frontline Business Overview & Revenue Model

Company Description

Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2021, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Hamilton, Bermuda.

How the Company Makes Money

Frontline generates revenue primarily through the chartering of its vessels. The company operates on a time charter and spot market basis, where it leases its tankers to oil companies and traders for a specified period or for single voyages, respectively. Revenue is influenced by shipping rates, which can fluctuate based on market demand, fleet utilization, and prevailing oil prices. Additionally, Frontline may engage in long-term contracts with major oil companies, providing a more stable income stream. The company also benefits from operational efficiencies and cost management strategies to maximize profitability. Strategic partnerships with leading oil corporations and participation in joint ventures can further enhance its market position and revenue potential.

Frontline Financial Statement Overview

Summary

Frontline demonstrates a solid financial position with strong cash flow generation and profitability. However, challenges include high leverage and declining margins. The company needs to focus on improving revenue growth and managing its debt levels to enhance financial stability.

Income Statement

Frontline's income statement shows a mixed performance. The TTM data indicates stable revenue with a gross profit margin of 32.8% and a net profit margin of 13.1%. However, these margins have decreased from the previous year, where the gross profit margin was 50.9% and the net profit margin was 24.2%. The revenue growth rate has stagnated in the TTM period, contrasting with the previous year's growth of 14.7%. Despite this, the company maintains a solid EBIT margin of 28.5% and an EBITDA margin of 42.6% in the TTM, though both have declined from the previous year. Overall, the company shows profitability but faces challenges in maintaining growth and margins.

Balance Sheet

Frontline's balance sheet reflects a high debt-to-equity ratio of 1.52 in the TTM, indicating significant leverage, which poses a risk. The return on equity has decreased to 10.1% from 21.2% in the previous year, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio stands at 40.7%, showing a moderate level of equity financing. While the company has a strong asset base, the high leverage and declining ROE are areas of concern.

Cash Flow

The cash flow statement reveals a strong operating cash flow to net income ratio of 1.32 in the TTM, indicating efficient cash generation relative to net income. Free cash flow has improved significantly, with a growth rate of 37.6% in the TTM, recovering from negative figures in previous years. The free cash flow to net income ratio is nearly 1, showing that the company is effectively converting its earnings into cash. Overall, the cash flow position is robust, with positive trends in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	2.05B	1.80B	1.43B	749.38M	1.22B
Gross Profit	468.72M	705.68M	776.11M	484.33M	27.23M	536.70M
EBITDA	808.47M	1.14B	1.07B	739.83M	211.34M	629.55M
Net Income	217.88M	495.58M	656.41M	475.54M	-14.96M	412.88M
Balance Sheet
Total Assets	5.71B	6.22B	5.88B	4.78B	4.12B	3.92B
Cash, Cash Equivalents and Short-Term Investments	191.65M	417.56M	315.75M	490.81M	115.51M	177.36M
Total Debt	3.24B	3.75B	3.46B	2.37B	2.37B	2.20B
Total Liabilities	3.39B	3.88B	3.61B	2.51B	2.46B	2.31B
Stockholders Equity	2.33B	2.34B	2.28B	2.27B	1.65B	1.61B
Cash Flow
Free Cash Flow	846.07M	-178.84M	-775.24M	52.93M	-399.47M	-120.26M
Operating Cash Flow	858.43M	736.41M	856.18M	370.89M	62.93M	604.06M
Investing Cash Flow	75.01M	-483.40M	-1.24B	-239.47M	-363.06M	-715.97M
Financing Cash Flow	-1.00B	-147.80M	433.07M	10.03M	223.55M	124.18M

Frontline Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRO, the sentiment is Positive. The current price of 26.29 is above the 20-day moving average (MA) of 23.08, above the 50-day MA of 23.47, and above the 200-day MA of 20.13, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 70.90 is Negative, neither overbought nor oversold. The STOCH value of 88.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRO.

Frontline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSW	76 Outperform	$2.78B	12.84	11.43%	6.12%	-23.59%	-57.70%
STNG	72 Outperform	$3.06B	9.62	9.63%	3.19%	-35.37%	-57.86%
DHT	72 Outperform	$2.13B	10.66	18.81%	6.12%	-16.45%	23.94%
FRO	70 Neutral	$5.85B	26.86	9.32%	4.32%	-13.41%	-60.18%
TNK	68 Neutral	$2.08B	6.68	17.02%	3.72%	-20.11%	-26.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GLNG	56 Neutral	$4.14B	69.39	2.99%	2.68%	19.15%	329.74%

Frontline Corporate Events

Frontline Shareholders Back Board, Auditor and Expanded Capital-Raising Mandate at 2025 AGM

On 8 December 2025, Frontline plc held its 2025 Annual General Meeting in Limassol, Cyprus, where shareholders received the audited consolidated financial statements for the year ended 31 December 2024 and voted on a series of governance and capital-related resolutions. Shareholders re-elected six directors, elected a new director, re-appointed PricewaterhouseCoopers as auditor with discretion for the board to set fees, and approved total board remuneration not exceeding USD 600,000 for 2025. The meeting also backed two key resolutions excluding shareholders’ pre-emption rights for 12 months from 8 December 2025 on potential public offerings of up to 377,377,111 new ordinary shares and an equivalent volume of convertible securities or options, at a minimum subscription price of USD 1 per security, thereby giving the board substantial flexibility to raise equity or equity-linked capital. In addition, shareholders approved, on an advisory basis, the company’s remuneration report for 2024, reinforcing support for the current executive pay framework and governance structure.

The most recent analyst rating on (FRO) stock is a Sell with a $145.00 price target. To see the full list of analyst forecasts on Frontline stock, see the FRO Stock Forecast page.